presented by: frank martinelli the center for public skills training
TRANSCRIPT
A Primer on Different Approaches to
Strategic Planning
Presented by:Frank MartinelliThe Center for Public Skills Training
Leadership’s Role in . . .
Assuring long term financial sustainability
Alliances, partnerships and strategic restructuring
Measuring mission impact
Board and staff leadership succession planning
Nonprofit advocacy and public policy work createthefuture.com
Governance As Leadership
A Framework for Strategic and Generative Thinking
3 Modes of Governance Fiduciary Mode – Key Questions
"How are we doing to date?" “Are we in compliance?” The board as “watchdog” - Anything wrong?
Strategic Mode – Key Questions "What should we be doing?” "Where are we going?“ The board as “strategist” - What’s the plan?
Generative Mode – Key Questions “What are the new possibilities?” “What’s the new question?” The board as “sense-maker” - What’s coming next?”
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Three Modes of GovernanceType I
FiduciaryType II
StrategicType III
Generative
Board’s role
Steward/ Watchdog
Strategist Sense Maker
Key question
What’s wrong?
What’s the plan?
What’s the key question?
Problems are to be
Spotted Solved Framed
Way of deciding
Reach resolution
Reach consensus
Reach understanding
No perfect one-size-fits-all strategic planning model for every organization at all times.
The Premise . . .
What is the purpose or hoped for outcomes to be achieved by strategic planning?
Is a comprehensive planning process that includes work on mission and vision or is the organization only looking to update an existing plan at the level of strategy or action objectives?
How rapidly is the external environment changing and what level of threat to the organization do these changes pose?
It Depends . . .
Have past planning efforts been successful or not and what is the level of support for strategic planning this time around?
Based on organizational culture and style, is there a preference for one strategic planning approach over another?
It Depends . . .
Strategic Planning: A Range of Options
More Focused Process
More Comprehensive Process
Mission/Vision Status Issue(s) Selection/Identification Information/Data Needs Number of Planning Participants Available Time
See page 2
Focused . . . . . Comprehensive
1. Basic, comprehensive model2. More narrowly focused issue-
based approach3. Strategic program planning4. Scenario planning5. Collaborative strategic
planning
Strategic Planning Approaches
A Comprehensive Model
Strategic Planning Defined
Strategic Planning is the process by which the guiding members of an organization envision its future and develop the necessary plans, procedures and operations to achieve that future.
Make Decisions About . . . The mission, vision and goals your
organization will pursue Whom you will serve Your organization's role in the community The kinds of programming, services or
products you will offer The resources needed to succeed How to best combine these resources,
programming and relationships for mission impact
Distinguishing Features Attention to external environment, markets
and stakeholders Focus on developing shared vision It’s strategic!
◦ Addressing critical emerging issues versus putting out brush fires
◦ Innovation versus business as usual
Planning as a Journey
Today’s Reality
Vision ofIntended Impact
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Steps of the Planning ProcessStep 1- Information Gathering and AnalysisStep 2 - Identification of Critical Issues Facing the OrganizationStep 3 - Development of Mission StatementStep 4 - Development of a Strategic Vision Statement that Sets Future Direction
Steps of the Planning ProcessStep 5 - Development of Strategic GoalsStep 6 - Formulation of Strategies for Each GoalStep 7 - Preparation for Implementation Planning Based on the Strategic Plan (Annual Objectives)
Levels of the Planning Process
Mission
Vision
Goals
Strategies
Objectives
“Forever”
5-10 years out
3-5 years
1-3 years
1 yearcreatethefuture.com
Strategic Planning Benefits Clear direction and focus Increased program impact Improved service delivery Enhanced marketing and fundraising Board effectiveness Foundation for other types of planning Engage others leading to deeper
commitments Be prepared for change
Elements of Effective Planning
Shared understanding of strategic planning Real commitment to the process Agreed upon outcomes for process Leadership of the board Involvement of key stakeholders Structured to encourage boldness, risk-
taking and creativity
Who Should be Involved? Organizational leadership
◦ Executive director and board president◦ Other board and staff leadership
Strategic planning committee Broad based constituent input
◦ Internal stakeholders--all board and staff members, consumers/clients volunteers representing
◦ External stakeholders--donors and prospective public and private funders, partners, among others
Step 1: Information Gathering and Analysis
External Assessment
Internal Assessment
Market Assessment
Types of Data Changes and trends that impact the
organization and the people we serve Market information about needs,
perceptions and services expectations Internal assessment data that indicates
capacity to deliver the mission
Sources of Data Existing statistics, studies, etc. Secondary market research Surveys Focus groups Key informant/expert Interviews Community forums Internal reviews, assessments and
evaluations
An Information Gathering Plan
Board and staff survey Key informant survey Focus groups (Ex. for a school: parents,
students, alumni, educators, community partners, donors, volunteers)
Financial trends data Data from regional and national networks Organizational assessments Accreditation reports
Step 2: Critical Strategic Issues
Fundamental policy or program concerns which define major choices an organization faces now and in the future
Long-standing problems anticipated to have a significant impact on the organization and/or community served
Major shifts in thinking that challenge business as usual
Tension Points
Step 3: Mission Timeframe — “Forever”
Broad description of what we do, with/for whom we do it, our distinctive competence, and WHY we do it (our ultimate end)
Mission communicates “purpose”
Step 4: Strategic Vision Timeframe — 5-10 years Out
Describes the results/ impact we will have achieved and what the organization will need to look/act like in order to achieve those results
Vision communicates “direction”
Planning as a Journey
Today’s Reality
Vision ofIntended Impact
createthefuture.com
Strategic Vision2005: The Milwaukee Public Library is Everyperson's gateway to an expanding world of information.
2014: MPL is an anchor institution that helps build healthy families and vibrant neighborhoods – the foundation of a strong Milwaukee.
Strategic VisionExample
We transform lives by creating a vibrant and diverse environment in which more women become independent, visible in leadership, and able to reach their full potential. Our mission and work are embraced by a community that has become intolerant of violence and oppression. (YWCA Sauk Valley)
Strategic Vision
Example
More people, bowling more often, having more fun. (Bowling Inc.)
Strategic Vision
Example
Every Nativity Jesuit Middle School student graduates from high school as a caring, compassionate and conscientious man poised for a life of Christian leadership and service.
Step 5: Goals Timeframe — 3 years outBroad statements of what the organization hopes to achieve in the next 3 years. Goals focus on outcomes or results and are qualitative in nature.
Example
Attract, develop and retain a versatile high performing workforce.
Step 6: Strategies Timeframe — 1-3 years
Statements of major approach or method for attaining goals and resolving critical issues.
Example
Offer a wide range of professional development opportunities for all employees.
Step 7: Objectives Timeframe — 1 year outSpecific, concrete, measurable statements of what will be done to achieve a goal generally within a one year time-frame.
Example
Launch a web-based professional training and development portal for employees by December 2014.
Goal/Strategy/Objective Progression
Goal Strategy Objective
Attract, develop and
retain a versatile high
performing workforce
Offer a wide range of
professional development
opportunities for all employees
Launch a web-based professional training and
development portal by December
2014
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ObjectivesWhat will be
accomplished
Responsible Party Position or group with primary responsibility
for the objective
Time FrameIdentify
completion date
MeasureHow achievement of objective will
be measured
Launch a web-based professional training and
development portal by December
2014
HR Director Dec. 31, 2014 • # of portal visits;• # of tools downloaded;• # of times accessed web based resources are incorporated into professional development plans• Etc.
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Accelerated Strategic Planning Responding to new
opportunities faster New models Not a substitute for
mission and vision work
“Faster is slower” Collaborative strategic
planning Create opportunities for
continuous strategic thinking
Focused Issue-based Approach
Highly focused effort: issue(s) clearly identified at the outset
Assessment of information/data needs Development of strategies and action
objectives to address selected issue(s)
Focused Issue Approach
Strategic Program Planning
MacMillan Matrix Matrix Map Theory of Change
Tools Sampler
MacMillan Matrix WorksheetProgram Fit Economic
AttractivenessAlternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Program 1
X X X X
Program 2
X X X X
Program 3
X X X X
Program 4
X X X X
1. Fit -- Degree to which a program "belongs" or fits within an organization (Good or Poor)
Congruence with mission/purpose and vision?
Organization has existing skills and competencies?
Able to share resources and coordinate activities with other programs?
2. Economic Attractiveness(High or Low) Current stable funding? High appeal to funders,
supporters? High market demand? Measurable, reportable
outcomes/results?
3. Alternate Coverage -- competition (High or Low)
Are similar services provided?
Do customers have many other choices?
Competitors now and future?
4. Competitive Position-- Stronger capability and potential to deliver the service than current or emerging competitors (Strong or Weak)
Good location, logistical delivery system?
Will customers remain? Grow?
Is quality superior? Record of securing
grants, funding?
Stable staffing? Ability to maintain
and continually increase competency?
Cost effective? Strong connections
with consumers and stakeholders?
MacMillan Matrix WorksheetProgram Fit Economic
AttractivenessAlternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Program 1
X X X X
Program 2
X X X X
Program 3
X X X X
Program 4
X X X X
MacMillan MatrixHigh Economic Attractiveness
(Easy to attract resources for support)
Low Econonic Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or Divest
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly Divestment POOR FIT
The Matrix MapBell, Masaoka and Zimmerman
What are your true costs?
Specific Costs
Shared Costs
Admin Costs
Direct Costs / Program Costs
Portion of rent, liability insurance, technology, etc.
Portion of administrative costs.
Understand Your Finances
Assessing Mission Impact
Criteria to Consider
Alignment with core mission
Excellence in execution Scale or volume Depth Filling an important gap Community building Leverage
Understand How Your Activities Inter-relate
Strategic Imperatives
Strategic Imperatives
Instead of:Taking it for granted . . . Not involving the board . . . Turning your attention to “problem areas”
Strategic Imperatives
Instead of:Closing it because its not breaking even . . . Making it the sacred cow that can’t be criticized . . .
Strategic Imperatives
Instead of:Giving it second class status . . . Keeping it separate from programs . . .
Strategic Imperatives
Instead of:Trying once again to improve it . . . Not thinking about it . . .
Theory of ChangeA Theory of Change defines
all the building blocks required to bring about a
long-term goal.
FEF THEORY OF CHANGE
The Foundry Educational Foundation strengthens the metal casting industry by supporting unique partnerships among students, educators and industry, helping today's students become tomorrow's leaders.
Priority HR needs of the industry are met
High talent students with
leadership potential choose metal casting careers
Industry will hire the
students “produced” by FEF
Students have the skills
required by Industry (talent pool is created)
Collaborative efforts add
measureable value Highly engaged
professors and facilities that attract students to the industry
Defined mix of FEF
schools aligned with industry needs (research schools, etc.)
Current Mission Intended Impact
Create opportunities for students with interest in metal casting and related fields to learn about employment/ leadership opportunities in the industry, develop relationships with industry leaders, and secure employment
FEF interacts with industry, schools and key professors to foster development of programs that produce the students with needed skills
Educate foundries on where and how student hires can be used/add value
FEF collaborates with other societies to advance the industry
Increase fund development efforts to support FEF efforts
Engage new schools (broaden base)
Provide support and recognition on behalf of high performing professors
Strategies for Impact Activities/ Programs/ Initiatives
CIC
Scholarships
Internships
FEF college/university certification & accreditation program
Metal casting advisory committees
Board contact to each school
Funding support to improve infrastructure
Research grants
Targeted endowments
Managed funds for AFS and others
Supplier support to FEF schools
Scenario Planning
Step 1. State the focal issue or purpose. Step 2. List the key factors that influence
the future in which our YWCA will operate. Step 3. List the driving forces among these
key factors. Forces that are highly predictable or
predetermined (i.e. demographics) Forces that are uncertain (i.e. public opinion).
Step 4. Rank the key factors and driving forces by importance and by uncertainty.
Step 5. Develop alternate futures.
Scenario Planning Steps
1. Develop an initial description of this scenario -- how you might expect this scenario to play out for the YWCA – what would be happening in such a future?
2. What is the impact of this future scenario on the YWCA and/or community served?
3. What are the implications for the YWCA? - What actions would we take to advance our mission if we knew this were the future?
4. Write a short story or narrative that describes your assigned scenario.
Scenario Development
Collaborative Strategic Planning
Collaborative Strategic Planning Increasingly common – and important!
Focus on a shared customer base or constituency rather than developing a plan for one organization
Convener: Mental Health America - Wisconsin
Collaboration Partners: Nonprofit organizations and public agencies working in mental health
Planning Focus: Develop strategies to incorporate prevention and early intervention initiatives into the state public mental health system
Case Example
Open space Future search conference
Whole systems Appreciative inquiry Real time strategic change
Other Approaches and Tools
Fostering Innovation, Boldness, And Risk Taking
Include “outsiders” Use analogies from
other fields Involve people at
the edges Meet in unfamiliar
settings Let yourselves go
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Preparing to Plan What do you expect to accomplish? How much commitment is there to the
process? Is there organizational readiness for
strategic planning? How will the board and key staff be oriented
to the process?
Preparing to Plan How long will it take? Who else should be involved? How? How will we encourage boldness, risk-taking
and creativity on the part of planning participants?
Should a consultant be used for all or part of the process?
Back-home Planning: Initial thinking about the planning approach that will meet your YWCAs
needs at this time
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